Here are the biggest challenges:

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1. Having money to buy rental property might not be as easy as some “gurus” say. It might be easier than expected but also more expensive if you will try to find a private investor.

2. Underestimating property maintenance and repairs can be very expensive if you cannot do anything by yourself or you don’t have good access to good and reasonable contractors.

3. Vacancy – Calculate how much it will cost you to keep the rent higher but having the property vacant for a few months or rather lower the rent.

4. Dealing with tenants. The best way is to set the expectations right at the start. Waiting for late-payments and being a nice landlord will not help. Start the eviction process right away if tenant is not able to pay on time. NEVER wait for the deposit and the first-month rent after the tenant will move in.

5. Safe property. Although you are covered by homeowners insurance you still can pay if the property is not safe. So make sure that all issues regarding the safety are resolved asap.

6. Be aware that rental property is your income. If you have more expenses you can lower your taxes but once you will want to sell you will have to pay taxes on your profit unless you have more expenses. Make sure that you understand the effect taxes will have and that you are prepared to pay them. Having a good contractor, accountant and lawyer is a must to deal with many challenges you may face owning rental property.